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Cape Town - Now is the time to encourage both foreign as well as local investment in South Africa, according to Kevin Hurwitz, chief executive officer of Wonga.com South Africa.
Significant tensions in labour-employer relations would, however, have to be addressed.
Hurwitz would like to see Finance Minister Pravin Gordhan shed some light in the budget on some of the initiatives he and Treasury have proposed.
The youth wage subsidy is an example.
"The minister should be helping business to create jobs by offering clarity on how these initiatives actually work," said Hurwitz.
One issue he expects to change, is exchange controls.
"I think we might finally see them being scrapped altogether. The concept is an antiquated measure and this might actually create confidence in foreign investors," said Hurwitz.
Another important issue he said must be addressed is corruption.
"If the government cannot bring the level of corruption under control, any of the good work done by Treasury will largely be irrelevant," he said.
"The widespread corruption and abuse of public funds have already caused massive outflows of investment funds from SA and a stagnation of the amount of new foreign direct investment into the country."
The Institute of Accountability estimates that corruption has cost South Africa over R700bn over the last 20 years.
Reports say that, through government’s tendering system, R30bn is stolen each year through corruption.
The Global Competitiveness Report scores South Africa 99th on the diversion of public funds, 79th on the perceived wastefulness of government spending and 98th on a general lack of public trust in politicians.
"All point to corruption being a major deterrent to foreign investment," said Hurwitz.
He also said that in order for South Africa not to be left behind the global digital revolution, Gordhan and government have to commit to drastically improving access to broadband and general connectivity rates.
In addition, government needs to be creating or upgrading existing legislation to take into account digital processes, he said.
As part of this, cybercrime has to be tackled.
"Once again it seems that we are in danger of being left behind by our global counterparts in countering this type of economic crime," said Hurwitz.
"As a business, it is highly frustrating for us not to be able to get any support and recourse when we, or our customers, report this type crime to the police."
He would like to see some kind of taskforce being established, with the specific aim of policing and prosecuting cybercrime.
"In addition, we would like to see some significant attention and resources being set aside for the education of consumers and prevention of this crime," he said.
Significant tensions in labour-employer relations would, however, have to be addressed.
Hurwitz would like to see Finance Minister Pravin Gordhan shed some light in the budget on some of the initiatives he and Treasury have proposed.
The youth wage subsidy is an example.
"The minister should be helping business to create jobs by offering clarity on how these initiatives actually work," said Hurwitz.
One issue he expects to change, is exchange controls.
"I think we might finally see them being scrapped altogether. The concept is an antiquated measure and this might actually create confidence in foreign investors," said Hurwitz.
Another important issue he said must be addressed is corruption.
"If the government cannot bring the level of corruption under control, any of the good work done by Treasury will largely be irrelevant," he said.
"The widespread corruption and abuse of public funds have already caused massive outflows of investment funds from SA and a stagnation of the amount of new foreign direct investment into the country."
The Institute of Accountability estimates that corruption has cost South Africa over R700bn over the last 20 years.
Reports say that, through government’s tendering system, R30bn is stolen each year through corruption.
The Global Competitiveness Report scores South Africa 99th on the diversion of public funds, 79th on the perceived wastefulness of government spending and 98th on a general lack of public trust in politicians.
"All point to corruption being a major deterrent to foreign investment," said Hurwitz.
He also said that in order for South Africa not to be left behind the global digital revolution, Gordhan and government have to commit to drastically improving access to broadband and general connectivity rates.
In addition, government needs to be creating or upgrading existing legislation to take into account digital processes, he said.
As part of this, cybercrime has to be tackled.
"Once again it seems that we are in danger of being left behind by our global counterparts in countering this type of economic crime," said Hurwitz.
"As a business, it is highly frustrating for us not to be able to get any support and recourse when we, or our customers, report this type crime to the police."
He would like to see some kind of taskforce being established, with the specific aim of policing and prosecuting cybercrime.
"In addition, we would like to see some significant attention and resources being set aside for the education of consumers and prevention of this crime," he said.
